Over the years, worldwide consideration has been given to the universal service problem the desirability of providing telephone service to those who cannot afford to pay and maintain telephone service. Networks are significantly more valuable as more users are able to use the network, and the lack of universal service is a bier to economic participation by those ling service. Societal benefits of having even the poorest on the public telecommunications network are so significant that it new U.S. Telecommunications Act of 1996 makes special provisions for universal service as part of the Act, including mechanisms to implement subsidized activities. Many states have life-line services which subsidize telecommunications services for users who meet certain low income tests.
Internationally, there arc even larger universal service problems as nations such as the Philippines, China, mad the republics of the former Soviet Union try to entice investment in their respective telecommunications infrastructures. In these emerging markets, the number of telecommunications lines per capita is much smaller. Because market-based solutions to the universal service problem in these markets are lacking, capital for network infrastructure is limited.
Therefore, there is a need for an improved apparatus and operating methodology that provides a market-based solution to the universal service problem.